What is the maximum drawdown?
The Maximum Drawdown is the maximum amount your account can lose before it is considered breached.
The Maximum Drawdown is static, based on your starting balance, and does not increase as your account grows.
It is calculated using closed balance only and does not trail.
Example:
If your starting balance is $100,000 and your Maximum Drawdown is 6 percent, your drawdown limit is $94,000.
If your account grows to $105,000, your drawdown level remains at $94,000.
If your balance or equity falls below $94,000 at any point, your account will be breached.
The Maximum Drawdown is static, based on your starting balance, and does not increase as your account grows.
It is calculated using closed balance only and does not trail.
Example:
If your starting balance is $100,000 and your Maximum Drawdown is 6 percent, your drawdown limit is $94,000.
If your account grows to $105,000, your drawdown level remains at $94,000.
If your balance or equity falls below $94,000 at any point, your account will be breached.